STOP COST
If it’s not essential, why spend it?
GONE UNCHECKED, HABITUAL SPENDING CAN BECOME WASTED MONEY
Approximately 75% of corporate expenditures are allocated to suppliers, with a portion deemed excessive, redundant, or habitual rather than strategically aligned with business goals. This constant outflow of funds represents a significant opportunity for scrutiny and optimization. Enter Frugalize, a program designed to swiftly and decisively enhance cost efficiency by identifying and eliminating waste in real-time. By implementing Frugalize, organizations can reintroduce a culture of fiscal prudence among budget holders, leading to immediate and tangible cost improvements.
"This service from Kshariltd proved instrumental in freeing up cash flow during a pivotal period for our business. In the long run, it prompted a reevaluation of our spending approach."
CREATE A COMMERCIAL CULTURE AND TAKE CONTROL OF SPEND
Managing mid-tail spend poses a significant challenge for Procurement teams. This category of spending is substantial in volume, making it difficult to influence effectively. While numerous automation and technology solutions prioritize improving purchasing processes, they often overlook two critical questions: first, “Are we allocating funds to the right areas in a cost-efficient manner?” and second, “How can we foster a more commercially-minded approach within our teams?”
In a Stop Cost program we help organizations to spend smarter. We bring:
- Proven method and process for implementing effective Stop Cost models
- Expertise to constructively challenge costs and suggest alternative solutions
- Market knowledge and insight to drive legacy process improvements
Kshariltd's Strategy for Eliminating Unnecessary Expenditure
Cease Expenditure is commonly utilized to achieve immediate cost savings and to reshape spending habits. It requires involvement from executive-level management and dedicated commitment from finance stakeholders to sustain momentum, uphold concentration, and facilitate prompt decision-making. Additionally, an open mindset is essential from budget holders and stakeholders alike. We rigorously assess spending in comparison to supply market standards and business priorities, including growth, brand reputation, customer service, and operational continuity.
We deliver:
- Set up and initial facilitation of the Stop Cost process and governance group
- Market insight challenge to complement business need challenge
- Capacity and capability to support stakeholders in supplier change or negotiation
LET’S TALK.
If you are looking to drive purposeful and profitable change, get in touch.
